Lifestyle Communities loses substantial shareholder

Victorian land lease operator Lifestyle Communities has disclosed a change to its substantial shareholder register.

JPMorgan Chase & Co. is no longer a substantial shareholder in the company after reducing its voting interest below the 5% threshold, according to a notice lodged with the ASX.

The investment bank previously held a 5.16% stake in Lifestyle Communities.

The change reflects a reduction in JPMorgan’s holding through a series of share transactions and securities lending arrangements.

While largely administrative, the move represents a shift in the company’s institutional shareholder base.

AustralianSuper remains the largest shareholder in Lifestyle Communities, holding a 16.94% stake valued at approximately $70 million. It is followed by Brahman Capital Management, which holds 15.23%, valued at around $63 million. Co-founder and former managing director and chief executive James Kelly owns 6.327%, worth about $26 million.

The change to the share register comes as Lifestyle Communities continues to navigate the fallout from a landmark VCAT ruling that forced the operator to overhaul its long-standing contract model.

From the third quarter of FY26, incoming residents will be able to choose between two contract options, including a new No Exit Fee model. Under the proposal, buyers can elect to pay their management fee either upfront at 10% or defer payment of up to 20% until they sell.

The changes follow a July ruling by the Victorian Civil and Administrative Tribunal (VCAT), which found Lifestyle Communities’ long-standing contract – used for 22 years – was invalid because the Deferred Management Fee (DMF) was calculated on the future sale value of a home, which could not be determined when the contract was entered into.

Lifestyle Communities, which is appealing the decision, has since revised its DMF structure so fees are calculated on the purchase price rather than the sale price, allowing homeowners to retain 100% of any capital growth.

The VCAT dispute – first brought to public attention through an ABC 7.30 investigation and disputed by Lifestyle Communities – has weighed on investor sentiment. Before the ABC report, the operator’s market capitalisation stood at $1.53 billion. Today, it is approximately $609 million.

Lifestyle Communities’ application for leave to appeal the VCAT ruling will be heard by the Victorian Supreme Court's Court of Appeal on 23 June. If leave is granted, the appeal will proceed, with the Court to deliver its decision in due course.